3 kW rooftop solar cost in Gujarat after the GST cut

"3 kW kitne ka padega?" is the first question at every site survey in Gujarat. Quotes for the same size vary widely, and customers compare totals without knowing what sits inside them. This post builds the price from government numbers, so both sides can read a quote line by line.

One caveat first. MNRE does not publish a market price for rooftop solar. It publishes a benchmark cost, which is the reference the subsidy is calculated from. We use it below as a stand-in price. Your real quote will differ, and the reasons are further down.

The short answer

For a 3 kW system in Gujarat, using MNRE's benchmark as the price:

• Benchmark cost: ₹1,45,000, which is ₹50,000 × 2 kW + ₹45,000 × 1 kW (MNRE scheme guidelines, clause 5(g))
• GST at the blended 8.9%: ₹12,905
• Total before subsidy: ₹1,57,905
• Central subsidy: minus ₹78,000
• Customer pays: ₹79,905
• Gujarat state top-up: none, explained below

The guidelines do not say whether the benchmark already includes GST. We added GST on top, which is the cautious reading.

What goes into the price

The guidelines list what a rooftop system contains (clause 9): solar modules, inverter, mounting structure, energy meter, array junction boxes, DC and AC distribution boxes, earthing, lightning and surge protection, cables, and drawings and manuals.

A quote under the scheme also carries two things customers forget they are paying for:

• Five years of free maintenance. Registered vendors must repair and maintain the plant free for five years from commissioning (clause 7(d)).
• Net-meter work. MNRE's model vendor-consumer agreement puts net-meter supply, testing, approvals and grid connection in the vendor's scope (Annexure 2, item 10).

The DISCOM's own meter and connectivity charges come on top unless the vendor includes them. Torrent Power publishes its amounts for PM Surya Ghar homes in Ahmedabad: ₹8,358.64 for a single-phase system of 1 to 6 kW, less a ₹2,950 "Govt. Subsidy" line, so ₹5,408.64 to pay; ₹8,647.50 to pay for three-phase in the same band (Solar Net-Metering Charges for MNRE Scheme). Confirm the amount on your quotation when you apply.

How the September 2025 GST cut moved the price

On 22 September 2025, GST on solar power generators and PV modules fell from 12% to 5% (PIB release from MNRE). A rooftop contract is not taxed at a flat 5%, though. The notification deems 70% of the contract value to be goods and 30% to be installation service (CBIC Notification 9/2025-Integrated Tax (Rate), entry 437). Services stay at 18%.

• Before: 70% × 12% + 30% × 18% = 13.8%
• After: 70% × 5% + 30% × 18% = 8.9%

On a ₹1,45,000 contract, GST drops from ₹20,010 to ₹12,905, a saving of ₹7,105. MNRE's own estimate for a typical 3 kW system is ₹9,000 to ₹10,500. The release does not show its working; the same 4.9 points of GST on a bigger quote gives a bigger rupee figure. The GST post shows the two invoice lines.

Central subsidy, and why Gujarat adds nothing

The central subsidy for 3 kW is ₹78,000, and it does not grow above 3 kW (clause 5(h)). It is paid only if every module is DCR, made in India from Indian cells (clause 5(m)), and only through a vendor registered on the national portal.

Gujarat's old top-up of ₹10,000 per kW, capped at ₹20,000, is still widely quoted. It does not apply. The state's SURYA Gujarat orders say its subsidy was "either of the state subsidy or MNRE subsidy, but not both", and the 2022 amendment ran the scheme "up to Financial Year 2024-25" (Gujarat Energy and Petrochemicals Department). Quote the customer ₹79,905, with no state line. The subsidy post covers the states that do add money.

Torrent areas vs PGVCL, UGVCL, MGVCL and DGVCL

The subsidy is the same everywhere in Gujarat. The bill it saves is not, because tariffs differ.

• Torrent Power, Ahmedabad, FY 2026-27, residential: ₹3.20 per unit for the first 50 units a month, ₹3.95 for the next 150, ₹5.00 above 200, plus ₹25 a month fixed for single-phase (GERC tariff order, Case 2585 of 2025).
• PGVCL, UGVCL, MGVCL and DGVCL, common urban residential schedule: ₹3.05 for the first 50 units, ₹3.50 for the next 50, ₹4.15 for the next 150, ₹5.20 above 250, plus ₹15 to ₹70 a month fixed by connected load (GERC tariff schedule, April 2026).

Electricity duty is billed on top of both. Torrent's order also notes a fuel-cost adjustment billed separately. The state DISCOM schedule defines single-phase supply as an aggregate load up to 6 kW. Check the phase before you quote meter charges.

Worked example: a 400-unit Torrent home in Ahmedabad

Take a single-phase home in Ahmedabad using 400 units a month.

The bill today, energy and fixed charge only:

• 50 units × ₹3.20 = ₹160
• 150 units × ₹3.95 = ₹592.50
• 200 units × ₹5.00 = ₹1,000
• Fixed charge: ₹25
• Total: ₹1,777.50

With solar

Generation. MNRE's own figure is 4 to 5.5 units per kW on a clear sunny day (MNRE FAQ, via PIB). Cloudy and monsoon days pull the yearly average down, so calculators commonly plan on 4 units per kW per day. That average is reported, unconfirmed. At 4 units, 3 kW gives about 360 units a month.

The bill with solar. Torrent sets solar units off against consumption each billing cycle (Torrent interconnection agreement, clause 7.2). The home now imports a net 40 units: 40 × ₹3.20 + ₹25 = ₹153.

Saving and payback

Saving: ₹1,624.50 a month, about ₹19,494 a year. Duty and fuel adjustment would add to it.

The same home on a PGVCL bill. On the state DISCOMs' urban schedule, with a connected load of 2 to 4 kW, the 400-unit bill is ₹1,755 today and ₹147 with solar. That is a saving of ₹1,608 a month.

Payback. On ₹79,905, about 4.1 years. With Torrent's ₹5,408.64 meter charges added, about 4.4 years.

Why two installers quote different prices for the same 3 kW

The benchmark is one number; real quotes move with the site. What a site survey usually finds:

• Modules. DCR modules are compulsory for the subsidy. A cheaper quote with non-DCR panels is a different product, and the customer loses ₹78,000.
• Structure. A raised structure over a water tank or stair cabin takes more steel.
• Cable run from the roof to the meter, and the earthing.
• What is written in: meter charges, net-meter paperwork, and the five-year free maintenance spelled out.
• Additional work. The model agreement lets the vendor raise a separate invoice, with GST, for extra work the building needs (Annexure 2, item 2).

What a typical quote leaves out

Ask about these before signing, so there is no argument at handover:

• The DISCOM's meter and connectivity charges.
• Civil work beyond the standard structure.
• Load enhancement if the sanctioned load is too low. For systems up to 10 kW, the DISCOM carries out any enhancement needed (Electricity (Rights of Consumers) Amendment Rules, 2024, rule 11(7A)). Ask whether it charges for it.
• Roof space. MNRE's rule of thumb is 10 to 12 square metres of shadow-free area per kW, so 3 kW needs roughly 324 to 387 square feet.

Try your own numbers in the solar cost calculator.